Xtract Resources, Longhau ink agreement for exploitation of Guy Fawkes deposit
Diversified metals and minerals producer Xtract Resources’ wholly-owned Mozambican subsidiary, Explorator Limitada, has concluded a mining contractor agreement with Longhau Tianci Mining for the exploitation of the Guy Fawkes hard rock gold deposit at its Manica mining concession in Mozambique.
Longhau was appointed to mine the Guy Fawkes hard rock gold deposit for six years or until the ore is either depleted or no longer viable.
The agreement provides for Explorator to receive 20% of gold production after the settlement of the mining production tax.
Explorator will also remit 35% of its share of the Guy Fawkes gold production to its existing hard rock collaboration partner Mutapa Mining and Processing (MMP).
Longhau will now start adit mining and initial underground development during the processing build phase.
Xtract executive chairperson Colin Bird says the signing of the agreement “should provide the opportunity for incremental cash flow during MMP’s Fair Bride construction and building phase”.
He adds that the Guy Fawkes deposit “shows considerable variation both in mining width and grade, demonstrating propensity for selective higher-grade mining”.
Longhau intends to work a portion of the deposit by opencast methods where drilling indicates that suitable grades locally can run close to surface. Underground mining will be selective, Xtract said on August 19.
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